Opposition Leader Tony Abbott holds New Zealand up as a fiscal pattern card for Australia

This was Opposition Leader Tony Abbott during an ABC 7.30 interview on 24 April 2013:

Well, that's not a correct figure. Yes, we do have to find significant savings, but it's nothing like that figure. Nothing like that figure at all. And let's look, if I may for a moment take you across the Tasman to New Zealand. The New Zealand National Government is on track to get total government spending down from 35 to just 30 per cent of GDP without savage cuts by two things. First, they've made changes that have promoted economic growth, and second, they have religiously guarded against additional new spending. And that's where this government has gone so wrong. Every day we have ministers talking about difficulties with the revenue and every day the Prime Minister is out there announcing billions in new spending.

Apparently Abbott believes that the New Zealand national economy is doing better than the Australian economy because the NZ Government is spending less, posted an operating deficit before gains and losses of $3.025 billion in the five months ended to 30 November 2012 and, expects to have a modest operating surplus of $66 million in 2014/15.

So just how well is New Zealand doing in comparison with Australia?

Yes, Australia has a budget deficit in 2013 but then so does New Zealand.

Australia is also carrying a degree of government debt:

January 2000 to April 2013

But then again, New Zealand is no stranger to government debt either.

Yes, the Australian Government spends more on infrastructure creation than New Zealand:

However, Australia also has a better international credit rating (AAA) than New Zealand (AA).

Another difference is the fact that the New Zealand Government suspended payments into the New Zealand Superannuation Fund in 2009 and has not resumed them to date, while the Australian Government superannuation co-contribution payments have not been suspended and its safety-net pension payments have increased.

If one looks at 2013 March Quarter data found at the New Zealand Treasury website then it is obvious that Australia still compares favourably with New Zealand across a number of the eight graphs shown below.

Australia has higher real GDP growth, lower government debt as a percentage of GDP, smaller current account deficit, a lower unemployment rate and a higher gross national income level.

New Zealand only

New Zealand only

WhileThe World Bank allows this comparison of Gross National Income based on purchasing power parity: